Connecting Digital Frontiers: A Canada–Pakistan IT Services Partnership

Canada’s booming technology sector (over $100B value) and Pakistan’s rapidly growing IT exports (a record $3.8B in FY2024–25) are strong complements. By aligning Canada’s innovation and investment climate with Pakistan’s skilled, cost-competitive IT workforce; both nations can unlock mutual growth in digital services, from software and AI to cybersecurity and digital marketing.

Key Points:

Pakistan’s IT Surge: Pakistan’s IT/IT-enabled services export earnings hit ~$3.8B in FY2024–25 (18% YoY)[1]. This sector is now a top foreign-exchange earner and enjoys major government support (Uraan Pakistan targets $10B by FY29[4]). Pakistan’s tech workforce (~600,000 professionals) thrives on a young, English-speaking talent pool and operational costs ~70% below North American levels[2]. The country ranks impressively in innovation outputs (e.g. 22nd worldwide in ICT services exports[5]).
Canada’s Tech Strength: Canada fields ~1.45M tech workers (6.8% of the workforce)[6] across ~83,000 firms (5.8% of GDP, ≈C$100B)[3]. Its ICT exports totaled $45.5B in 2023[7]. Canadian tech workers earn a median $80,197 (48% above the national median)[3], reflecting high skill levels. Government incentives (R&D tax credits, AI initiatives) and flexible immigration (38% of tech workers are foreign-born)[8] bolster innovation, especially in AI, fintech and cleantech.
Complementary Advantages: Pakistan offers Canadian firms a cost-effective, culturally compatible outsourcing and co-development base (with remote IT services, digital marketing, etc.). For example, Pakistani agencies already provide AI-driven marketing services tailored for North American markets[9]. Conversely, Canadian investors and tech companies can provide capital, mentorship and market access to Pakistani startups. This synergy can create jobs in both economies and diversify trade beyond traditional commodities.
Growing Bilateral Trade: While two-way goods trade is modest (Canada→Pakistan ≈US$220M in 2024[10]), services collaboration is a clear growth path. Pakistan excels in mobile apps and ICT exports[5], which Canada can tap to optimize its digital strategies. Recent data show record Pakistan IT exports and robust growth (e.g. Dec 2024 exports up 28% YoY[11]). Policymakers and investors on both sides note these trends and see a “digital bridge” as the real trade advantage[10][4].

Canada and Pakistan both emphasize innovation. Pakistan’s government has launched 250 e-Rozgaar centers for digital skills and offers export incentives[1][4]. It also expanded IT companies’ access to foreign currency earnings, boosting confidence[12]. Canada’s federal and provincial governments provide R&D tax credits, startup incubators and immigration pathways that have helped tech hubs like Toronto and Vancouver flourish[13][8]. These policies make Canada attractive for technology partnerships and set a model for Pakistan to adopt similar R&D incentives.

For policymakers and investors, the Canada–Pakistan IT nexus is promising: increased bilateral collaboration can mitigate economic risks (e.g. by diversifying exports) and foster innovation clusters. Joint venture support programs, tech education exchanges, and science-and-technology accords (building on the recent Canada–Pakistan science cooperation MoU) could formalize this partnership. Academics can facilitate exchange of best practices in digital governance and startups. Importantly, both publics stand to benefit: Canadians gain affordable, skilled IT support and new market opportunities, while Pakistanis gain foreign investment, higher-wage jobs, and integration into global tech supply chains.

Conclusion: By leveraging Canada’s advanced ICT infrastructure and Pakistan’s dynamic IT talent, both nations can turn strategic vision into reality. Coordinated policies – such as enhancing trade facilitation, investment in joint R&D (especially in AI and cybersecurity) and diaspora-driven entrepreneurship – will maximize impact. Investors are eyeing Pakistani startups (already present at global tech conferences) and Canadian tech companies continue expanding R&D (e.g. new tech centers in Toronto)[13]. In short, a collaborative “Digital Bridge” between Canada and Pakistan promises shared economic growth, innovation leadership and jobs for the future[1][3].

* Dr. Muhammad Jahanzaib is the Founder & Chief Visionary Officer (CVO) of Diamanium Thinkers, a global think tank. He holds a PhD in International Relations, specializing in the intersection of politics and economics in Pakistan’s foreign and domestic policy. A double gold medalist and published scholar, he writes on economic intelligence, economic diplomacy, political economy, AI, and regional cooperation in South Asia and beyond. He can be reached at jahanzaibdgc@gmail.com.

Key References:

[1] Pakistan’s IT exports hit US$3.8 billion in FY 2024-25 – SAMENA Daily News

https://www.samenacouncil.org/samena_daily_news?news=106709

[2] PSEB ANNUAL REPORT

https://techdestination.com/wp-content/uploads/2025/01/PSEB-ANNUAL-REPORT-7_compressed.pdf

[3] [6] Canada’s growing tech industry and workforce highlighted in new CompTIA report

https://www.comptia.org/en-us/about-us/news/press-releases/canadas-growing-tech-industry-and-workforce-highlighted-in-new-comptia-report/

[4] [11] [12] Pakistan recorded highest ever monthly IT exports of $348 million in Dec. 24 — data | Arab News

https://www.arabnews.com/node/2586784/%7B%7B

[5] Global Innovation Index 2024 – GII 2024 results

https://www.wipo.int/web-publications/global-innovation-index-2024/en/gii-2024-results.html

[7] Information and communications technologies – Tradecommissioner.gc.ca